Energy Australia boss says national plan for renewable energy is solution to high power prices

Catherine Tanna says customers can expect a surprise from their bills after this Summer.

The Business

One of the country's largest operators of coal-fired power stations has joined the chorus of big business, unions, welfare and environmental groups calling for an end to Canberra's blame game over renewables.

While renewables are more expensive now, Ms Tanna told The Business they were the better option in the long-term.

"As at today, newer forms of energy are more expensive than some of the older forms of energy, but over the next 20 years those older, cheaper forms of energy are going to retire," she said.

"That's a reality and that's why we need a plan to transition into those newer forms of energy."

Her comments echo the sentiments voiced in a joint statement issued from an unlikely alliance of 18 groups — including the Business Council of Australia, the Australian Aluminium Council and World Wildlife Fund — demanding a non-partisan approach to energy policy.

"Let's understand what the problem is, get the facts on the table and then altogether we have to work on solutions," Ms Tanna said.

"We need urgently a national plan to transition to a lower-emission economy."

"If we can find other people that can build and operate these projects more cheaply than we could do it ourselves, for example, then we will underpin those investments, but that will lead to more affordable energy," Ms Tanna said.

The company also has a commitment to underpin up to 500 megawatts of new renewable energy by offering guarantees to take the power.

"The single-biggest barrier to investment is uncertainty around policy settings," she said.

"So when there is a lot of rhetoric about policy settings changing, no matter who it comes from, or a lot of flip-flopping about the fiscal assumptions it makes it very, very difficult for anyone to make a commitment to new projects."